The Judicial Retirement System covers the Chief Justice and Associate Justices of the State Supreme Court, and all judges of the Superior Court and Tax Court of New Jersey. If an employee is a member of the State Judiciary in any of these capacities, membership in the Judicial Retirement System is required as a condition of employment.

J-1 and F-1 visa holders are eligible for membership in the JRS if they meet all of the general eligibility criteria listed above.

Required Form

Rate of Contribution

The rate of contribution will be 3% of the member's total base salary before federal taxes are withheld. This contribution rate became effective for any eligible judge enrolled on or after January 1, 1996.

Back Deductions

Back deductions are mandatory pension contributions subject to IRC Section 414(h). They are the pension obligations owed from the date of enrollment or transfer to the date deductions are certified to begin.

Back deductions are calculated on the member's current annual salary, regardless of when the member is enrolled. If back deductions are owed for a time period exceeding 12 months, 8.25% interest is added.

JRS is a "Qualified" Pension Plan

The JRS is a "qualified" pension plan under the provisions of the Internal Revenue Code, Section 401(a)(17); therefore, the current federal ceiling on pensionable salary ($230,000 in 2008) applies to base salaries of JRS members. Salary earned by a member in excess of this amount is not pensionable; that is, it may not be used in determining member contributions and benefits. For more information about this topic, please see "History of Pensionable Salary Limits."

JRS Contributions are Tax Deferred

Since January 1, 1987, mandatory pensions contributions have been federally tax deferred under IRC 414(h). This reduces a member's gross wages subject to federal income tax.

Contributions are taxable for State tax purposes.

Purchases of service credit are voluntary pension contributions and ordinarily are not tax deferred.

For a fuller discussion of Purchasing Service Credit, click here.

Consequences of Membership in Other State-administered Pension Systems

If an employee is a member of another State-administered retirement system at the time of becoming a judge, the following options are available:

• The member may elect to withdraw and receive a refund of all contributions made to the prior retirement system;
• The member may elect to transfer membership, provided the non-JRS account has not expired;
• If eligible, the enrolled JRS member may elect to immediately receive or defer retirement benefits in the first system.

It is important for JRS members to know that they may, while serving as judges, receive a portion of the benefits earned under another retirement system. However, upon retirement from JRS, all rights to retirement benefits from a prior system must be forfeited. (Members are always entitled to a refund of contributions to a prior system, less any benefits already received.)

Eligibility for State-paid Coverage under the State Health Benefits Program at Retirement

To be eligible for State-paid health benefits upon retirement, a minimum of 25 years of service credit must be attained, under the same pension system. This may have an impact on a JRS member's decisions to purchase service credit, transfer service credit, etc. A member desiring to learn more about this should contact the Division of Pensions and Benefits in writing.

"Non-Judicial" Service Credit

A member's service credit will be counted separately for "Judicial" time and "non-Judicial" time.

Non-Judicial credit will be given for any service that the member was able to transfer from another State-administered retirement system into the JRS at the time of enrollment. Members will receive non-judicial credit for any eligible service they were allowed to purchase in the JRS (other than prior judicial service).

Enrollment Issues for Those Receiving Retirement Allowances

Working for private industry or the federal government will not affect JRS retirement benefits. For those individuals who return to public employment after retirement, there are several areas of concern:

• No member, while receiving a JRS pension or retirement allowance, shall engage in the practice of law before any of the courts of this State.
  
  
• Any retired justice of the Supreme Court or any retired judge of the Superior Court may be recalled by the Supreme Court for temporary service in the Supreme Court or elsewhere within the judicial system. If the member accepts the call to reemployment, the justice or judge will be paid on a "per diem" basis in an amount established by the Supreme Court. In no event shall a retired JRS member receive a salary, which, when combined with a pension or retirement allowance, exceeds the current salary of a justice or judge of the court from which he or she retired. In addition, reimbursement will be made by the State for reasonable expenses incurred by the justice or judge in connection with his/her assignments. Reimbursements for expenses are not considered salary for pension purposes.
  
  
• Returning to work in a position covered by any other State-administered retirement system is allowed. The member's retirement allowance will continue and the member may receive a salary; however, a JRS retiree who is receiving a retirement allowance may not become a member of another NJ State-administered retirement system. If a JRS member has filed for a Deferred Retirement, there are certain rare circumstances where enrollment may be allowed. For these situations, please contact the Division of Pensions and Benefits for more information.
  
  
• Returning to public employment in New Jersey may affect a member's eligibility to continue coverage under the State Health Benefits Program. The retiree should contact the Division of Pensions and Benefits for more information.